How Can I Earn Interest? (1) Staking

"I can earn money just by holding crypto?"

Yep. But it's not magic. Knowing where the money comes from makes it less scary.

Blockchain, super simple version

A blockchain is like a shared notebook everyone can see. Every transaction gets recorded for all to check.

But who keeps this notebook updated? Lots of people do, together. They verify: "Is this transaction legit?"

These people are called validators. Validators get paid in coins for their work. Think of it like getting paid for a part-time job.

Not everyone can be a validator

To become one, you need to put up coins as a deposit. It's your promise: "I'll do my job honestly." For Ethereum, that's 32 ETH. Right now, that's over $100,000.

This is where staking comes in

Don't have 32 ETH? No problem. You can lend your coins to a validator.

The validator uses your coins to do their job. You split the rewards. That's staking.

Simple version? "I can't do the work myself, so I lend money to someone who can, and we share the profit."

Things to know

Staking rewards aren't fixed like bank interest. They change based on network conditions.

Also, you might not be able to withdraw right away. This is called a "lockup period."

It's not free money. It's payment for helping run the network.

How Ethpack Makes Staking Easy

Ethpack handles all this complexity for you. No need for 32 ETH. Just a few taps to start staking. Earning interest on Ethereum doesn't have to be complicated.